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Lightning Wholesale needs to predict dollar sales for each month in 2021. A variety of techniques are used in business to forecast sales. One technique
Lightning Wholesale needs to predict dollar sales for each month in 2021. A variety of techniques are used in business to forecast sales. One technique examines year-to-year change in sales. Thus, the management at Lightning Wholesale has decided to perform a historical three-year analysis on both average monthly sales and average yearly sales to grasp how these figures have changed. Once the change is understood, the averages will be used to project the sales for each month in 2021. Month 2018 Sales 2019 Sales 2020 Sales January $1,337 $1,928 $1,798 February $2,198 $2,122 $2,407 March $2,098 $2,503 $2,568 April $2,540 $2,843 $2,985 May $2,751 $2,765 $3,114 June $2,885 $3,152 $3,242 $2,513 $3,128 $3,306 August $3,784 $3,513 $3,852 September $4,200 $4,700 $4,815 October $6,079 $6,888 $7,222 November $10,878 $11,120 $12,839 December $8,136 $10,226 $9,630 (All figures are in thousands of dollars) July a. 3. Establish monthly average ratios to determine how each month compares to the yearly average. For each month, calculate the average sales across all three years. Also average the yearly averages calculated in question 1. Round your answers to whole numbers. b. For each month, establish a ratio between the average sales in the month (from question 3(a)) and the average of the yearly sales (also from question 3(a)). Express the ratio so that the average yearly sales is a term of one. Round your answers to two decimals
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